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Published on March 08, 2018

Choice Properties Real Estate Investment Trust Completes $1.3 billion Issuance of Series K and Series L Senior Unsecured Debentures


TORONTO, March 8, 2018 /CNW/ - Choice Properties Real Estate Investment Trust ("Choice Properties" or the "Trust") (TSX: CHP.UN) announced today that it has completed its previously announced issuance, on a private placement basis in certain Provinces of Canada, of $1.3 billion aggregate principal amount of senior unsecured debentures of the Trust in two series (the "Offering"). The Offering included (i) $550 million aggregate principal amount of series K senior unsecured debentures bearing interest at a rate of 3.556% per annum and maturing on September 9, 2024 and (ii) $750 million aggregate principal amount of series L senior unsecured debentures bearing interest at a rate of 4.178% per annum and maturing on March 8, 2028 (collectively, the "Debentures").

The net proceeds of the Offering will be used by the Trust to partially fund the purchase price in respect of the Trust's previously-announced acquisition of all of the assets of Canadian Real Estate Investment Trust (the "Acquisition").

The net proceeds of the Offering have been placed in escrow and will be released from escrow upon satisfaction of the applicable release conditions, including the completion of the Acquisition. The Debentures are also subject to a special mandatory redemption in the event that the agreement relating to the Acquisition is terminated or the applicable escrow release conditions are not satisfied by October 13, 2018. The redemption price for any special mandatory redemption will be 100% of the aggregate principal amount of the Debentures, together with accrued and unpaid interest on the Debentures from and including the date of settlement up to but excluding the date of the special mandatory redemption.

DBRS Limited has provided the Debentures with a credit rating of "BBB" with a "Stable" trend and Standard and Poor's Ratings Services has provided the Debentures with a credit rating of "BBB". The Debentures rank equally with all other unsecured indebtedness of Choice Properties that has not been subordinated.

The Debentures were sold on an agency basis by a syndicate of agents co-led by TD Securities, RBC Capital Markets, CIBC Capital Markets and BMO Capital Markets. The Debentures offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Debentures in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Choice Properties Real Estate Investment Trust
Choice Properties is a public real estate investment trust traded on the Toronto Stock Exchange (TSX) under the trading symbol CHP.UN.

Forward-Looking Statements
This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Choice Properties' current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Choice Properties' control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed in Choice Properties' 2017 Annual Report and current Annual Information Form. Choice Properties does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. All forward-looking statements contained in this press release are made as of the date hereof and are qualified by these cautionary statements.

SOURCE Choice Properties Real Estate Investment Trust